74
2 Energy Sector Progression in India
The 12th plan made the following suggestions for energy security:
i. Enhancement of domestic production of coal, oil and gas, and other energy
sources was urgently required and for this purpose availability of land, clearances for environment and forest, and implementation of the Scheduled Tribes
and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006
should be expedited;
ii. Uncertainty about production sharing contracts should be appropriately
addressed.
iii. Devise management strategies and procedures for ensuring effective implementation of fuel development projects.
iv. A viable and attractive policy regime for substantial private investment
including foreign investment in oil and natural gas blocks and new capacities
for renewable energy.
v. Investments in renewable energies must be enhanced as the rate of share of
renewable energy in total energy consumption will only reach 2% by 2021.
vi. Investments in energy assets in foreign countries, especially for coal, oil, and
gas and uranium should be stepped up.
vii. As a shield against disruption in oil supplies (India is import-dependent to the
extent of more than 80%) storage capacities need to be created. Increasing
storage capacity has not been the priority of Indian government and only 5.33
million tons of petroleum products against annual consumption of 183.5 million
tons in 2015–2016 was available. The Organization for Economic Cooperation
and Development (OECD) countries have generally created these capacities to
the extent of 90 days of their domestic demand.
By 2040, almost a century after independence, India endeavors to attain energy
consumption almost equivalent to those of the developed countries. In order to realize
this aim, new and emerging technologies have to be adopted in order to harness
renewables such as solar, wind, and bio. Next two decades are crucial to define
a realistic energy pathway as climate-induced disaster events increase in number,
frequency and intensity. There will be international pressure to reduce coal and
crude oil consumption and switch over to natural gas, solar, wind, and hydro energy.
There are strong indications that transport sector will be driven by lithium ion and
solar cells. Household and industrial sector will be dominated by electricity and gas.
India may be left behind by miles should it decide to continue with coal and lignite
in the long term as currently envisaged.
References
Aayog NITI (2017) Draft national energy policy. National Institution for Transforming India,
Government of India, New Delhi. https://niti.gov.in/writereaddata/files/new_initiatives/NEP-ID_
27.06.2017.pdf
Bhattacharyya SC (2005) The Electricity Act 2003: will it transform the Indian power sector?
Utilities Policy 13(3):260–272
2 Energy Sector Progression in India
The 12th plan made the following suggestions for energy security:
i. Enhancement of domestic production of coal, oil and gas, and other energy
sources was urgently required and for this purpose availability of land, clearances for environment and forest, and implementation of the Scheduled Tribes
and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006
should be expedited;
ii. Uncertainty about production sharing contracts should be appropriately
addressed.
iii. Devise management strategies and procedures for ensuring effective implementation of fuel development projects.
iv. A viable and attractive policy regime for substantial private investment
including foreign investment in oil and natural gas blocks and new capacities
for renewable energy.
v. Investments in renewable energies must be enhanced as the rate of share of
renewable energy in total energy consumption will only reach 2% by 2021.
vi. Investments in energy assets in foreign countries, especially for coal, oil, and
gas and uranium should be stepped up.
vii. As a shield against disruption in oil supplies (India is import-dependent to the
extent of more than 80%) storage capacities need to be created. Increasing
storage capacity has not been the priority of Indian government and only 5.33
million tons of petroleum products against annual consumption of 183.5 million
tons in 2015–2016 was available. The Organization for Economic Cooperation
and Development (OECD) countries have generally created these capacities to
the extent of 90 days of their domestic demand.
By 2040, almost a century after independence, India endeavors to attain energy
consumption almost equivalent to those of the developed countries. In order to realize
this aim, new and emerging technologies have to be adopted in order to harness
renewables such as solar, wind, and bio. Next two decades are crucial to define
a realistic energy pathway as climate-induced disaster events increase in number,
frequency and intensity. There will be international pressure to reduce coal and
crude oil consumption and switch over to natural gas, solar, wind, and hydro energy.
There are strong indications that transport sector will be driven by lithium ion and
solar cells. Household and industrial sector will be dominated by electricity and gas.
India may be left behind by miles should it decide to continue with coal and lignite
in the long term as currently envisaged.
References
Aayog NITI (2017) Draft national energy policy. National Institution for Transforming India,
Government of India, New Delhi. https://niti.gov.in/writereaddata/files/new_initiatives/NEP-ID_
27.06.2017.pdf
Bhattacharyya SC (2005) The Electricity Act 2003: will it transform the Indian power sector?
Utilities Policy 13(3):260–272